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Definition
Concurrent engineering is a business strategy which replaces the traditional product
development process with one in which tasks are done in parallel and there is an earlyconsideration for every aspect of a pr oduct's development process. This strategy focuses on
the optimization and distribution of a firm's resources in t he design and development process
to ensure effective and efficient product development process.
Need for Concurrent Engineering
In today's business world, corporations must be able to react to the changing market needs ra
pidly, effectively, and responsively. They must be able to reduce their time to market and
adapt to the changing environments. Decisions must be made quickly and they must be done
right the first time out. Corporations can no longer waits time repeating tasks, therebyprolonging the time it takes to bring new products to market. Therefore, concurrent
engineering has emerged as way of bringing rapi d solutions to product design and
development process.
Concurrent engineering is indisputably the wave of the future for new product development
for all companies regardless of their size, sophistication, or product portfolio. In order to becompet itive, corporations must alter their product and process development cycle to be able
to complete div erse tasks concurrently. This new process will benefit the company, although
it will require a large amount of refinement in its implementation. This is because, concurrentengineering is a process th at must be reviewed and adjusted for continuous improvements of
engineering and business operations.
The Concurrent Engineering Approach
Concurrent engineering is a business strategy which replaces the traditional product
developm ent process with one in which tasks are done in parallel and there is an earlyconsideration for ever y aspect of a product's development process. This strategy focuses
on the optimization and distribut ion of a firm's resources in the design and development
process to ensure an effective and efficient product development process. It mandatesmajor changes within the organizations and firms that use i t, due to the people and
process integration requirements. Collaboration is a must for individuals, groups,
departments, and separate organizations within the firm. Therefore, it cannot be applied atleisure. A firm must be dedicated to the long term implementation, appraisal, and
continuous revisi on of a concurrent engineering process.
Strategic Plan of Concurrent Engineering
Concurrent engineering is recognized as a strategic weapon that businesses must use foreffec tive and efficient product development. It is not a trivial task, but a complexstrategic plan that demands full corporate commitment, therefore strong leadership andteamwork go hand and hand with suc cessful concurrent engineering programs.
HOW DO APPLY CONNCURRENT ENGINEERING
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Commitment, Planning, and Leadership
Concurrent engineering is not a trivial process to apply. If firms are going to commit to co
ncurrent engineering then they must first devise a plan. This plan must create organizationalchange throughout the entire company or firm. There must be a strong commitment from the
firm's leadership in order to mandate the required organizational changes from the top down.
Concurrent engineering w ithout leadership will have no clear direction or goal. On the otherhand, concurrent engineering wi th leadership, management support, and proper planning will
bring success in today's challenging mark et place.
Continuous Improvement Process
oncurrent engineering is not a one size fits all solution to a firm's development processes.
There are many different aspects of concurrent engineering which may or may not fit in a
corporatio n's development process. Concurrent engineering is only a set of process objectivesand goals that h ave a variety of implementation strategies. Therefore, concurrent engineering
is an evolving process that requires continuous improvement and refinement. This continuous
improvement cycle consist of p lanning, implementing, reviewing, and revising. The process
must be updated and revised on a regular basis to optimize the effectiveness and benefits in
the concurrent engineering development process.Communication and Collaboration
The implementation of concurrent engineering begins by creating a corporate environment
that facilitates communication and collaboration not just between individuals, but also
between separate o rganizations and departments within the firm. This may entail majorstructural changes, re-education of the existing work-force, and/or restructuring of the
development process.
BASIC PRINCIPLE OF CONCURRENT ENGINEERING
Get a strong commitment to from senior management. Establish unified project goals and a clear business mission. Develop a detailed plan early in the process. Continually review your progress and revise your plan. Develop project leaders that have an overall vision of the project and goals. Analyze your market and know your customers. Suppress individualism and foster a team concept. Establish and cultivate cross-functional integration and collaboration. Transfer technology between individuals and departments. Break project into its natural phases. Develop metrics. Set milestones throughout the development process. Collectively work on all parts of project. Reduce costs and time to market. Complete tasks in parallel.
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WHEN IS CONCURRENT ENGINEERING USED
The majority of a product's costs are committed very early in the design and development process. Therefore, companies must apply concurrent engineering at the onset of a project. This
makes c oncurrent engineering a powerful development tool that can be implemented early in
the conceptual des ign phase where the majority of the a products costs are committed. Thereare several application in which concurrent engineering may be used. Some primary appl
ications include product research, design, development, re-engineering, manufacturing, and
redesignin g of existing and new products. In these applications, concurrent engineering isapplied throughout the design and development process to enable the firm to reap the full
benefits of this process.
WHY DO COMPANIES USE CONCURRENT ENGINEERING
Competitive Advantage
The reasons that companies choose to use concurrent engineering is for the clear cut benefits
and competitive advantage that concurrent engineering can give them. Concurrentengineering can benefit companies of any size, large or small. While there are several
obstacles to initially implementing concurrent engineering, these obstacles are minimal
when compared to the long term benefits that concurrent engineering offers.
Increased Performance
Companies recognize that concurrent engineering is a key factor in improving the quality,development cycle, production cost, and delivery time of their products. It enables the early
discovery of design problems, thereby enabling them to be addressed up front rather than
later in the development process. Concurrent engineering can eliminate multiple designrevisions, prototypes, and re-engineering efforts and create an environment for designing
right the first time.
Reduced Design and Development Times
Companies that use concurrent engineering are able to transfer technology to their markets
and customers more effectively, rapidly and predictably. They will be able to respond to
customers needs and desires, to produce quality products that meet or exceeds theconsumer's expectations. They w will also be able to introduce more products and bring
quicker upgrades to their existing products through concurrent engineering practices.
Therefore companies use concurrent engineering to produce better quality products,developed in less time, at lower cost, that meets the customer's needs.
HOW CONCUURRENT ENGINEERING BENIFITS COMPANY
There are several benefits that concurrent engineering can bring, although it is difficult toquantify many of these benefits by using spreadsheets and numbers. These are not only benefits
whic h the participating company will experience, but ultimately the end users or customers alsowill reap these benefits by having a quality product which fits their needs and in many case, costs
them less to purchase. Therefore, concurrent engineering produces a unified profitable
corporation and a satis fied consumer.
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Regardless of the type of application, there are significant benefits to the firms or organiz ations
that use crossfunctional teams.
Potential Advantage of Using Concurrent Engineering
Faster time to market which results in increased market share. Lower manufacturing and production costs. Improved quality of resulting end products. Increased positioning in a highly competitive world market. Increased accuracy in predicting and meeting project plans, schedules, timelines, and
budgets.
Increased efficiency and performance. Higher reliability in the product development process. Reduced defect rates.
Increased effectiveness in transferring technology. Increased customer satisfaction. Ability to execute high level and complex projects while minimizing the difficulties. Shorter design and development process with accelerated project execution. Higher return on investments. Reduction or elimination of the number of design changes and re-engineering efforts at
later phases i n the development process.
Reduced labor and resource requirements. Ability to recognize necessary design changes early in the development process. Increased innovation by having all players participate in the concept development phase. Ability to design right the first time out / First time capabilities.
Overlapping capabilities and the ability to work in parallel. Increased cohesiveness within the firm. Improved communication between individuals and departments within the firm. Lower implementation risks. Faster reaction time in responding to the rapidly changing market. Lower product and process design and development costs. Improved inventory control, scheduling and customer relations.